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Four major overseas suppliers from Asia and Middle East have announced fresh import PE offers to China right on the first trading day of the week mostly at a stable to $10-20/ton firmer compared to the previous weekly price list. There is some resistance at first, but more deals have been achieved, signaling the start of the pre-Lunar New Year replenishment period.

“We sold more than 1000 tons of HDPE film to China in the price range $1050-1055/ton, CFR term. It is easier to move cargoes now than a couple of week ago. We might focus on this market in the coming days instead of Southeast Asia,” a Thailand maker informed.

Meanwhile, deals for prompt Saudi LLDPE film are reported at $1030/ton CFR China with a source close to the producer added, “Inventories pressure on overseas sellers has now eased. The effect from the plunged ethylene costs might temporarily be undermined by the buyers’ needs to stock up material. Just that the sustainability remains a question.” 

Several deals for Indian LLDPE film have also reached at $1010/ton CFR China.  

Besides the tradition to stock up materials ahead of the long holiday, sources said that buyers, who previously purchased Iranian cargoes now need alternative materials following some delayed in shipment for this origin. 

“Up to 50% of our previously purchased Iranian PE cargoes are delayed for another one month. Supply might not be too much in the first quarter of the year,” a buyer added.  

Trading activities might continue to improve in the coming day; however, players do not expect any major price changes as a result. Softer upstream costs and cloudy outlook in February is silently planting more caution among buyers.

Import PE CFR China term at the moment stands at $1050-1145/ton for HDPE film, $1010-1100/ton for LLDPE film, and at $1030/ton for LDPE film.

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